Falling Demand Sends Gasoline Prices Lower

(LOS ANGELES, October 18, 2005) — The average price of a gallon of gasoline in Southern California fell by almost nine cents per gallon in the past month as motorists reduced driving after paying pump prices that topped $3 per gallon in September, according to the Automobile Club of Southern California monthly Fuel Gauge Report.

The Southern California October average price for regular self-serve gasoline is $2.943, which is 8.8 cents below last month's price of $3.031.

"All time record high prices in September had their effect on demand for gasoline in October," said Auto Club spokesperson Carol Thorp. "Most people can't reduce essential driving, such as commuting to work. But seeing gasoline prices above $3 per gallon apparently was enough for motorists cut back discretionary driving. As demand for gasoline dropped, pump prices followed."

However, the gasoline price dynamic may change this week as forecasters chart the course of Hurricane Wilma, which is churning through the Caribbean Sea. Currently, Wilma is expected to miss the beleaguered oil producing regions of Texas and Louisiana.

Statewide, the average price for October is $2.923, down 10.6 cents from $3.029 in September. The all time record high of $3.054 was set on September 9. The lowest average price in California is in La Habra, where regular is selling for $2.782. Blythe reports the state's highest average price at $3.201.

Nationally, the average price is $2.742, down from $2.956 in September. The least expensive gasoline in the country is found in Oklahoma City, Okla., where the average gas price is $2.242. The highest average price for gas in the United States in Wailuku, Hawaii, where a gallon of regular unleaded sells for $3.75.

In Southern California, the averages for regular and premium grades of gasoline are listed below:

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The Automobile Club of Southern California is a member club affiliated with the American Automobile Association (AAA) national federation and serves members in the following California counties: Inyo, Imperial, Kern, Los Angeles, Mono, Orange, Riverside, San Bernardino, San Diego, San Luis Obispo, Santa Barbara, Tulare, and Ventura.